Saturday, January 02, 2010

As I mentioned in a previous post, my sister told me that her company is moving to a smaller warehouse. While this move may not affect most of her colleagues, my sister said that she will have to drive further to the warehouse since she is in-charged of order fulfillment and shipping. My sister loves driving. It's the price of gas that has her worried.

With this change of plans, however, her employer has promised to provide her with a fixed monthly auto allowance since she will spend so much time on the road now running between the retail store, suppliers and warehouse.

At this point, though, the company does not have a proper mileage reimbursement program since there is only one "mobile employee", my sister but my sister is confident that she will not be shortchanged. Her boss is a very reasonable lady despite her stinginess.

Anyway, for companies which have a fleet of mobile employees, it is to their benefit to adopt a proper auto allowance program for the benefit of both parties; the employer and employee. The company will be able to reduce liability, lower risks and manage costs better while the employees will get to enjoy mileage reimbursement that is 100% tax free. My sister’s fixed monthly auto allowance is also tax-free!